I think the LPI had more of a unique 'place' to fill on the server back when they were incompetent doughnut-munchers. As they are now, they're basically just very limited LN or BHG (which is how most of the police factions turn out, really). There's really nothing differentiating a LPI character from a LN character if you ignore the letters before their name... LPI tend to fly smaller ships, that's all.
Now, maybe if they were played as corrupt non-heroic employees who really just want to collect their paycheck (and maybe a few healthy bribes) and go home at the end of the day, then they might be a bit more unique.
Other than that, I think the police factions are more suited to NPCs than players. They're just the pointless little brothers of the military factions, since the militaries can (and do) do everything the police do, and more.
